Challenges and Prospects of Credit and Saving Share Companies: the Case of Meta Robi Woreda Credit and Saving Share Company, in West Shoa Zone Oromia Regional State- Ethiopia
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Date
2016-06
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Addis Ababa University
Abstract
Increasing access to micro finance services is accepted as one of the tools to attack poverty.
Oromia Credit and Saving Share Company (OCSSCO) is one of the three largest institutions that
accounts for 65% of the market share in terms of borrowing clients and 74% by loan provision.
While OCSSCO was established in August 1997, Meta Robi Credit and Saving Share Company
(MRCSSCO) was established ten years later in August, 4, 2007. This thesis attempts to assess
Meta Robi Credit and Saving Share Company challenges it faced and its future potentials in this
area. The research methodology was employed for this study Primary; data were collected
through questionnaire, interview and focus-group discussion from regular and new clients.
Secondary data were collected from different published books, unpublished yearly or quarterly
reports journal of articles, academic paper and other relevant official documents and reports
has been used to analyze the case study. The results of the study reveal that the MRCSSCO’S
micro financing scheme has had a positive impact on improving the coverage/outreach of its
clients in the study woreda. Absence of follow up, continuous training, monitoring and supervise
the activities of the poor who operating their business in the environments with high business
risk in nature. Based on the findings, it has been found out that, MRCSSCO should develop the
capacity of its staff, enhance its institutional capability, and must make an effort to strengthen its
financial capacity in order to increase its coverage for all kebeles poor households.
Key terms: Microfinance institutions, rural and urban households, credit and saving, low income
households
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Keywords
Microfinance institutions, Rural and urban households, Credit and saving, Low income households